Logistics specialist LIP Invest has acquired a recently completed distribution centre in Kitzingen, Germany, for its Logistics fund IV.
LIP secured the property, ConneKT 118, from developer Scannell Properties. Financial details were not disclosed.
The brownfield development was built on a 40,300 m2 site formerly used as a military area. The total leasable area of the logistics property is around 23,700 m2, of which 21,300 m2 is warehouse space, 1,000 m2 is mezzanine space and 1,400 m2 is office space.
The logistics hall can be divided into two units. With 20 truck gates and 14 Sprinter gates, as well as two ground-level access gates, various access options are available.
The property offers a total of 60 car and 2 truck parking spaces as well as charging options for e-vehicles and bicycles. The central wood pellet heating system of the Kitzingen industrial park supplies the new building with local heat.
As a result, the property's primary energy demand is lower than with heating methods using fossil fuels. In addition, LIP's sister company AvanLog Solar will install a photovoltaic system with more than 5,000 modules on the roof of the logistics property.
With an output of more than 2 megawatt hours of electricity per year, the planned system could supply around 864 private households and save approximately 1,000 tons of CO2 per year.
The new building has already been leased to tyre manufacturer Tyremotive on a long-term basis.
'We were able to acquire the first logistics centre from Scannell Properties in the ConneKT industrial park in Kitzingen for our portfolio in 2021. With today's purchase, we are securing a predictable cash flow return for our institutional investors and tapping into additional potential for value appreciation over the holding period of the new-build logistics property,' said Bodo Hollung, managing director and partner of LIP Invest.
Geoffrey Pizzanelli, Scannell Properties’ head of capital deployment Europe & the UK, added: 'This building is a great example of the high quality, sustainable, institutional product that we are able to take through the entire development cycle, from brownfield acquisition and construction to leasing and sale.
'The sector continues to be supported by strong fundamentals and we continue to explore new development opportunities in strategically located European hubs.'
LIP was legally supported in the off-market deal by Reius, fiscally by Ebner Stolz and by ES EnviroSustain for the ESG due diligence. Argos was responsible for the technical due diligence and ongoing construction controlling.
